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Aerospace giant EADS restructures under Airbus name

The European aerospace group EADS has chosen to rename itself Airbus in a revamp that will see its defense and space technology units merged. The firm also announced a big jump in profits for the first part of the year.

EADS announced the name change on Wednesday following a meeting of the board the previous day to discuss the restructuring drive.

The move brings all of the group's divisions together under the Airbus name, in line with that of its core civil airplane-making business - which makes nearly 70 percent of group revenue.

"The renaming simply gathers the entire company under the best brand we have, one that stands for internationalization, innovation and integration - and also for some two thirds of our revenues," said the company's CEO, Tom Enders.

Plans announced by the firm in Munich also include the merger of defense division Cassidium with EADS' space operation, Astrium, and the military division of the current Airbus operation, Airbus Military. The space-defense group is to be known by the name Airbus Defense & Space and is expected to be based in Ottobrunn, near Munich.

The core airplane making business is to retain the Airbus name. Meanwhile, Eurocopter - which is the world's largest civil rotary aircraft maker - is to remain a separate unit and will become Airbus Helicopters.

Profits nose upwards

EADS said the changes would "enhance integration and cohesion" of the group, which was formed from the aerospace companies of France, Germany and Spain.

Meanwhile, the company also posted a leap of 14 percent in its second-quarter net profits this year, to 518 million euros ($686 million). For the first half, a net profit of up 31 percent to 759 million euros ($1 billion) was reported. The core Airbus unit also received 722 net orders in the first half, up from 230 a year earlier.

EADS has been working on extensive reforms since a hugely publicized but failed merger attempt last year with Britain's BAE Systems.